P11D Services

HMRC will shortly start to issue reminders about P11D submissions to employers.

What is a P11D?

A P11D form is used to report any benefits in kind, an employer has provided to an employee. They should be completed by the employer, each year by the 6th of July.

In 2019 the P11D should have information relating to any benefits provided from 06 April 2018 to 05 April 2019. These must be submitted by 6th July with any tax due, being paid to HMRC by 22nd July.

What is a P11D (b)?

This is the employer’s part of the P11D process and summarises the employees P11D forms and what is due to be paid by the employer for Class 1A NIC.

Do you provide any benefits to your staff? Benefits could include items such as;

  • Healthcare
  • Company cars
  • Interest –free loans.

Not all benefits will attract tax, therefore it’s important to understand the impact of each benefit provided and keep accurate records of what’s been provided to each employee.

Why do you need to submit a P11D?

Employers need to submit P11D and P11D (b)’s to HMRC, to confirm the value of benefits provided to their employees and any class 1A NICS due to be paid by the employer.

HMRC will collect any tax due from the benefits from the employees directly. The employee is informed of the amount due by HMRC and will allow employees to pay;

  • Directly via the employees personal tax account
  • Via the employees tax code for the current year

Payrolling benefits

If an employers has registered for payrolling benefits, any benefits covered by this agreement with HMRC do not need to be added to the P11D. Employees will have already paid the necessary tax on the benefit during the payroll process.

Employers however will need to include any benefits not covered by the payrolling BIKS agreement with HMRC and include the value payrolled in their P11D (b) return to ensure they pay the NIC due on the benefit.

Fines

Fines will be given if you miss the deadline, the company will incur fines of £100 per month or part month per 50 employees. HMRC are also able to levy other fines if they believe the company has acted carelessly.

If you need help with P11Ds get in contact with us on 01202 084747.